UK house price growth will slow to a more “sustainable” pace in 2015 and beyond, according a CBRE forecast.
National house prices will grow by 25% between 2015 and 2019, data from CBRE’s residential research team shows. London will lead the way with a 31% increase.
Tighter mortgage regulation, affordability issues and the prospect of interest rate rises will slow runaway price growth from 2015 onwards, said Jennet Siebrits, head of residential research at CBRE.
“We have entered a low transaction environment, with 2014 likely to have been the peak in activity. We expect that over the coming years the volume of transactions across the UK will be below the long-term average, but this is a positive thing, as it signals a return to sustainable growth,” she said.
